The best Side of hbs case solution
The best Side of hbs case solution
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30 year US maturity government fascination prices at the conclusion of April 1988 have already been utilized for logistics division considering the fact that Marriot has an extended background and it is a significant corporation. For another two divisions, the management employs temporary debt as cost of personal debt so ten years maturity govt interest fees have been applied.
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The calculation of WACC involves calculating Firstly the cost of equity and price of credit card debt. In order to compute the expense of equity for each with the a few divisions, the danger free price utilized for the lodging division is eight.
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